Poultry News

Egg Prices Rise Due to Scarcity

03 June 2013

SRI LANKA - Egg prices are increasing continuously due to supply constraints and if the trend continued, consumers may not be able to afford to buy eggs, the All Island Poultry Association (AIPA) warned. Chairman of the Association, Dr D.D. Wanasinghe said that there were several factors that constrain egg supply.

Sunday Observer reports that producers have formed groups at regional level and they control supply and manipulate the market. "We have received information that there is an organised move by large producers to sell layer hens for meat and thereby reduce egg production and maintain higher prices."

The AIPA has no control over these groups or large producers. There is also a significant decline in the parent layer population and it has created a short supply of layer hens, he said.

Last Friday, the retail price of white and red eggs were Rs.13 and Rs.14. According to the AIPA in late April the egg price was around Rs.10 . In early May it was Rs.11.50, mid May Rs.12 and by the end of the month the price stood at Rs.14 for an egg. In the supermarkets, prices were higher and stood between Rs.16 to Rs 17.

K. Mayadunne of the Egg Club, a group of layer farmers in the North Western province, agreed that eggs were in short supply.

However, he said that the prices of Rs.13 to Rs14 was not high and it was only now that farmers were getting a reasonable price for eggs.

Two months ago, the cost of production of an egg was Rs.10.83 and the farmgate price was Rs. 8. at that time farmers faced a loss of Rs. 2.83 per egg and this was the situation most of the time.

This is the main reason for the decline in production. The price of poultry feed and other inputs were increasing rapidly and if the authorities wished to keep egg prices low, they should reduce the price of inputs and cut tax imposed on them, he said.

"Prices of all commodities are increasing and complaints about the high price of fish were few. Consumers pay Rs. 20 for a cup of plain tea without making any complaint. So eggs at Rs. 13 to Rs14 each is a reasonable price for farmers and consumers.|

The Egg Club is an organisation formed to represent layer farmers. We cannot control supply and manipulate the market,” he said.